CPA FAR EXAM QUESTIONS AND 100% CORRECT ANSWERS
What is the Pneumonic for the 4 Quarters
JAJULIO : Q1: Jan, Feb, March ; Q2: April May June ; Q3: July August September ; Q4:
October November December
LIFO Pneumonic
LIFO LEI LGP
BRI CDC
Beg Carry amount * Effective Rate = Interest Expense - Cash Paid = Discount Amortized
= Ending Carry Amount
What are the 3 Governmental Funds
Governmental, Fiduciary, Proprietary
Pneumonic for Governmental Funds
G: Governmental (Modified Accrual)
G: General
SR: Special Revenue
CP: Capital Project
D: Debt Service
P: Permanent
Pneumonic for Proprietary Funds
P: Proprietary Funds (Accrual)
EN: Enterprise
,IS: Internal Service
Pneumonic for Fiduciary Funds
F: Fiduciary Funds (Accrual)
PEN: Pension
IT: Investment Trust
PP: Private Purpose Trust
C: Custodial Funds
Pneumonic for 5 Steps for Revenue Recognition
I: Identify the Contract with a customer
S: Identify the Separate performance Obligation
T: Determine the Transaction Price
A: Allocate the transaction price to the separate performance obligation
R: Recognize Revenue based upon either "point in time" or "over time"
Pneumonic for Other Comprehensive Income
P Pension adjustments
Certain gains and losses from defined benefit pension plan accounting
U Unrealized Gains and Losses (Available for Sale Debt Securities and Hedges)
Available for sale debt securities
Cash flow hedges
F Foreign Currency Items
Foreign Currency translation adjustments
I Instrument Specific Credit Risk
Liabilities for which the fair value option is elected
,MIC
Market Approach
Income Approach
Cost Approach
BASE
B: Beginning Retained Earnings
A: Add Income
S: Subtract Dividends
E: Ending Retained Earnings
Pneumonic for Land Depletion
R: Residual Value (Subtract)
E: Extraction/development cost
A: Anticipated restoration cost
L: Land Purchase Price
Pneumonic for Acquisition Method? What letters do I debit and Credit?
C: Common Stock Subsidary
A: APIC subsidary
R: Retained Earnings Subsidary
I: <Investment in Subsidary>
N: <Noncontrolling Interest>
B: Balance Sheet adjusted to fair value
I: Identifiable intangible assets fair value
G: Goodwill
Dr: CAR BIG
CR: IN
, Pneumonic for Classifying a Lease for the Lessee:
O: Ownership of equipment transfer at end of lease?
W: Written purchase option that the lessee is "reasonably certain" to exercise?
N: NPV of the lease payments equal or substantially exceed assets fair value?
E: Economic life of the asset contained with the lease term?
S: Is the Asset specialized such that it has no alternative use to the lessor at lease-end?
If yes to ANY it's a FINANCE LEASE. If not to ALL, it's an OPERATING LEASE.
Bank DOE
Bank:
D: + Deposits in transit
O: - Outstanding Checks
E: +/- Errors
Book: (BIDENS)
B: Book
I: + Interest Earned
D: + Deposits Collected
E: +/- Erros
N: - NSF Checks
S: - Service Charges
LEG
L: line of Business its a major one
What is the Pneumonic for the 4 Quarters
JAJULIO : Q1: Jan, Feb, March ; Q2: April May June ; Q3: July August September ; Q4:
October November December
LIFO Pneumonic
LIFO LEI LGP
BRI CDC
Beg Carry amount * Effective Rate = Interest Expense - Cash Paid = Discount Amortized
= Ending Carry Amount
What are the 3 Governmental Funds
Governmental, Fiduciary, Proprietary
Pneumonic for Governmental Funds
G: Governmental (Modified Accrual)
G: General
SR: Special Revenue
CP: Capital Project
D: Debt Service
P: Permanent
Pneumonic for Proprietary Funds
P: Proprietary Funds (Accrual)
EN: Enterprise
,IS: Internal Service
Pneumonic for Fiduciary Funds
F: Fiduciary Funds (Accrual)
PEN: Pension
IT: Investment Trust
PP: Private Purpose Trust
C: Custodial Funds
Pneumonic for 5 Steps for Revenue Recognition
I: Identify the Contract with a customer
S: Identify the Separate performance Obligation
T: Determine the Transaction Price
A: Allocate the transaction price to the separate performance obligation
R: Recognize Revenue based upon either "point in time" or "over time"
Pneumonic for Other Comprehensive Income
P Pension adjustments
Certain gains and losses from defined benefit pension plan accounting
U Unrealized Gains and Losses (Available for Sale Debt Securities and Hedges)
Available for sale debt securities
Cash flow hedges
F Foreign Currency Items
Foreign Currency translation adjustments
I Instrument Specific Credit Risk
Liabilities for which the fair value option is elected
,MIC
Market Approach
Income Approach
Cost Approach
BASE
B: Beginning Retained Earnings
A: Add Income
S: Subtract Dividends
E: Ending Retained Earnings
Pneumonic for Land Depletion
R: Residual Value (Subtract)
E: Extraction/development cost
A: Anticipated restoration cost
L: Land Purchase Price
Pneumonic for Acquisition Method? What letters do I debit and Credit?
C: Common Stock Subsidary
A: APIC subsidary
R: Retained Earnings Subsidary
I: <Investment in Subsidary>
N: <Noncontrolling Interest>
B: Balance Sheet adjusted to fair value
I: Identifiable intangible assets fair value
G: Goodwill
Dr: CAR BIG
CR: IN
, Pneumonic for Classifying a Lease for the Lessee:
O: Ownership of equipment transfer at end of lease?
W: Written purchase option that the lessee is "reasonably certain" to exercise?
N: NPV of the lease payments equal or substantially exceed assets fair value?
E: Economic life of the asset contained with the lease term?
S: Is the Asset specialized such that it has no alternative use to the lessor at lease-end?
If yes to ANY it's a FINANCE LEASE. If not to ALL, it's an OPERATING LEASE.
Bank DOE
Bank:
D: + Deposits in transit
O: - Outstanding Checks
E: +/- Errors
Book: (BIDENS)
B: Book
I: + Interest Earned
D: + Deposits Collected
E: +/- Erros
N: - NSF Checks
S: - Service Charges
LEG
L: line of Business its a major one
